Chevron agrees to pay county $1.25M for cleanup of Talbert Channel oil leak

Chevron will pay Orange County $1.25 million for removing gallons of oil that leaked from a ruptured pipeline into the Talbert Channel in Huntington Beach last year, according to a settlement agreement reached Tuesday.

A contractor crew working for the county’s Department of Public Works was enhancing the channel’s flood control capacity on Oct. 6, 2022, when a worker drove a segment of sheet piling into an abandoned pipeline near Indianapolis Avenue.

Oil soon after began bubbling up into the waters of the channel, prompting immediate containment efforts. A unified command response comprising county staff, Chevron representatives and state and local agencies worked to prevent impacts to the Talbert Marsh downstream.

The sheen of oil can be seen in this October 2022 image of the Talbert Channel, where county contractors accidentally struck an abandoned Chevron pipeline that still contained oil.

(California Department of Fish & Wildlife)

Approximately 60 gallons of pollutants were ultimately recovered from the Talbert Channel, according to the agreement.

Although the collaboration — coming one year after a ruptured underwater pipeline spilled 25,000 gallons of oil into the waters off Huntington Beach — was swift and effective, a dispute later arose in which Orange County and Chevron each alleged the leakage was the result of negligence on behalf of the other party.

County officials claimed the oil company, which has owned the pipeline since the 1940s, failed to properly purge its contents when it was abandoned in the ’60s and was unable to provide record of its existence after the leakage occurred.

Chevron contended the county, which cut and capped the pipe in 1997, should have removed any remaining oil inside the infrastructure upon discovery.

As part of the settlement, Chevron has 30 days from the document’s Tuesday signoff to procure the required $1.25 million. Both parties have agreed to release one another from any future claims or causes of legal action.

The document, however, does not exempt Chevron from taking future legal actions against the construction crew hired by the county or any other entities related to the incident.

The county is similarly capable of seeking further legal action against other parties, County Counsel Leon Page said Tuesday, reporting from a closed session meeting of the Orange County Board of Supervisors.

“The county reserves its right to proceed against other parties in connection with this spill and will continue to vigorously enforce reimbursement rights under federal and state environmental laws for the protection of all resident taxpayers,” Page reported.

The document also specifies that neither party, in signing the settlement, is accepting blame for the incident.

“The county and Chevron have categorically and specifically denied and continue to deny any liability or wrongdoing of any kind associated with the dispute and/or the spill,” it states.

Fifth District Supervisor Katrina Foley, who advocated for taking legal action against Chevron if representatives failed to reach an agreement, lauded the news.

“The $1.25-million settlement will reimburse the taxpayers for the Talbert Flood Channel oil leak,” Foley said in a statement Tuesday. “This settlement reflects Chevron taking responsibility for the abandoned pipeline.”